DEAR FRNDS PLZ CLARIFY
" IS TDS TO B DEDUCTED ON PAYMENT TO NURSING HOME ? " it is to b further noted that the payer is cover under TAX AUDIT u/s 44AB.
15 Replies
Sachin Kumar Agrawal
(CA - Final)
(414 Points)
Replied 11 May 2011
IT IS A COMPOSITE BILL OF NURSING CHARGES, MEDICINE, FEES ETC
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 11 May 2011
for business or not ?
if its personal treatment then NO TDS, as its capital expenditure
if the expenses are to be posted in P/L account of business as allowable expenses then only TDS applicable u/s 194C, TDS on contract
Sachin Kumar Agrawal
(CA - Final)
(414 Points)
Replied 11 May 2011
IS 194J WILL ATTRACT OR NOT ??????????????
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 11 May 2011
Nursing Home is not a professional person,
if the payment is made to any specialist doctor then only 194J
Sachin Kumar Agrawal
(CA - Final)
(414 Points)
Replied 11 May 2011
BUT THE OWNER OF IT IS A PROFESSIONAL PERSON... i. e. DOCTOR.. it is c & m by d doctor.. den??
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 11 May 2011
is the payment made towards feel of specialist? then 194J
if gross charges of nursing home then 194C
but above all such expenses are capital expenses, in practical when insurance companies pay to nursing home, they deduct TDS, as for them its expense,
for any individual its not expense, but capital outgo.
Sachin Kumar Agrawal
(CA - Final)
(414 Points)
Replied 11 May 2011
it is a construction company. den?
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 11 May 2011
It will attract TDS under section 194J as it amounts to Professional or Technical services.
194C shall not at all come into picture as such type of payments are not covered anywhere in the section. So if at all TDS is applicable on this, it is 194J.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 11 May 2011
@ amol
the query has been clarified as
IT IS A COMPOSITE BILL OF NURSING CHARGES, MEDICINE, FEES ETC
so i assume its accomodation and other services inclusive thats why contract.
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 11 May 2011
194 C covers only following type of payments
1. Works Contracts
2. Supply of Labour
3. Advertising Contracts
4. Broadcasting and telecasting including production of programmes for such broadcasting or telecasting
5. Carriage of goods and passengers by any mode of transport other than railways
6. Catering
7. Manufacturing or supplying a product according to the requirement or specification of customer by using material purchased from such customer, but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer.
So, it wont come under the scope of 194C
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 11 May 2011
| Originally posted by : Sachin Kumar Agrawal | ||
 |
it is a construction company. den? |
 |
keep your interview mode on 
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 11 May 2011
Whichever company it may be, if the expense so incurred is a part of allowable expenditure, then TDS has to be done under section 194J.
Sachin Kumar Agrawal
(CA - Final)
(414 Points)
Replied 11 May 2011
if the total amount is covered under deduction of tds.? in the case the bill is composite
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